Formulating by Demographics

ASIA is considered as one of the fastest developing hubs for business opportunities in the food and beverage space. With growing economies and increasing disposable incomes, the spending capacity of consumers for fortified foods and health ingredients has witnessed a sharp rise in the past decade, especially in countries like India and China. The purchasing power parity (PPP) has witnessed an incredible growth in Asia Pacific increasing from 25% in 1995 to 34% in 2009 with average earnings doubling in the past five years. As European and North American markets mature, food manufacturers and retailers are meticulously on the lookout for new avenues.

Improved Purchasing Power

The increasing disposable incomes in Asia Pacific imply the purchasing power of today’s consumers. Markets in the region offer promising opportunities to tap in this segment, owing to the upcoming and adventurous generation who are game for trying new and innovative products. The concept of health and wellness continues to spread like wildfire in these potential markets. People are increasingly aware of the benefits of staying healthy and are looking at following preventive measures than reactive ones, to ensure better health and safety. As a result they have started inculcating foods and beverages fortified with health ingredients that offer these advantages.

A direct consequence of this is the ever-increasing number of products occupying the retail shelves. The number of Internet users has surged upwards and most of the consumers have started doing preliminary searches online about the products that they wish to consume. Another important factor to note here is the slow rate of aging population in countries like Malaysia, Singapore and Indonesia, when compared to Europe and North America. The working population aged 25-40 forms the major chunk of the total population, which substantiates the potential for this market in terms of consumer purchasing power.

Convincing Consumers

However, there are quite a few challenges that the industry needs to address for further penetration of these health foods and beverages. Some of these challenges include creating sufficient awareness amongst consumers, satisfying their taste buds according to the region catered, and providing convenient and effective packing solutions.

Convincing consumers who belong to a diverse, complex and unique geographic area has always been a challenging issue. Since India, Taiwan, Viet Nam, Philippines and Thailand are upcoming markets, but are often marked by consumer scepticism and brand loyalty for local products. However, the situation is shifting towards a favourable outcome for international brands, which are trying to establish their footprint in this part of the globe.

Gradually influenced by the western world, markets in Asia have been marked by increasing consumption of convenience foods and packed products due to escalating prevalence of living a sedentary life style, especially in India and China.

The increasing urban population are ready to experiment with new products that claim to improve health provided certain conditions are met. Some factors that influence purchase pattern of consumers include natural labels on foods, convenient packing, freshness, and more importantly, the product has to be look attractive with high functionality and eye capturing captions. Marketing, mode of delivery, promotional leaflets and advertisements also play a pivotal role in the success story of products fortified with health ingredients. Having said this, the niche group of consumers are willing to pay a higher premium for deservinNike Magista Obra